GameStop Shares Rise On New Share And Debt Repurchase Program

Shares in GameStop saw a boost Friday after the retailer said it would replace its previously-announced share and debt repurchase program with a new $500 million plan. The Grapevine, TX-based retailer said its board of directors authorized the additional funds, which will replace a previous share and debt repurchase program announced in September last year. Shares were up 3.6 percent to $20.20 in early afternoon trading on the Nasdaq. Earlier this week, shares for the physical retail-centric GameStop slid as publisher Electronic Arts reported a rising digital business. One of the main advantages of a company buying back its own stock is that earnings are then divided among fewer shares, which leads to greater earnings per share, potentially boosting stock prices. The funds from the newly-authorized plan will be used over the next year-and-a-half to repurchase GameStop stock and/or senior notes. GameStop executive chair Dan DeMatteo said, "This board authorization emphasizes GameStop’s ongoing commitment to increase total shareholder return and supports the company’s goal to increase return on invested capital, while maintaining the liquidity to execute our business strategy."